From Election Day, Five Year Inflation Breakeven Up 33 BPS; EPU Up 231. What could go wrong?
Figure 1: Top Graph – EPU (Blue), 7 Day Centered Moving Average (Red); Bottom Graph-Five Year Treasury-Tips Breakeven (Blue), and KKW Estimate of Five Year Inflation (Red), Both in %. Source: policyuncertainty.com and treasury via Fred and Author’s Calculations.